Expect A Bounce In WTI Prices

We are still in a period of headline risk in financial markets generally. Stocks, bonds and currencies are all reacting to news on subjects as diverse as trade, North Korea, and Italian politics. Neither Italian political turmoil nor an on again, off again relationship with North Korea are anything new, but the prospect of an escalating trade war has traders in every market worried. The bond and currency markets are reacting as you might expect, with the U.S. 10 Year yield falling and the Dollar gaining ground as the “risk-off” trade gathers pace. (Click to enlarge) Both have seen a bounce off obvious levels, 95 for the Dollar Index and 2.75 for 10 Year yields, but for now the trends remain intact. Stocks are a different story. U.S. equities are holding up remarkably well and remain close to the top of an upward recovery channel that has been in […]